I get the feeling the foundation has been laid, and important relationships formed over the last 9 months. From day 1, Centro have stuck to their guns and have not panicked. I really believe Centro will fix themselves as GR has said all along.
Key points:
Employees: ‘We have taken important steps to improve retention, through new compensation incentives & better communication methods’
Centro infrastructure: Establishment of Executive Committee in Australia and Management Committee in US – combination of these 2 committees meets weekly to coordinate communication between the geographies. Leadership Group (35 managers) also instituted for both Aus and US.
Recapitilisation: Asset sale program will provide company liquidity in the short term, but alone is not a long term solution. ‘With banks continued support, we are not a forced seller of assets. We will proceed with sales which meet our criteria, including an acceptable price’.
New equity: A number of offers have been received to date, however in ‘consultation with its lenders’, has not felt any proposals were in the best interests of stakeholders.
Seeking a longer-term debt extension beyond 15 December, to enable a more stable environment for employees and investors.
Part of the long term extension may involve some form of hybrid security – no new details as proposals being formulated.
CNP Price at posting:
8.3¢ Sentiment: LT Buy Disclosure: Held
